EUR/JPY may be close to attractive buying territory - Credit Agricole

Credit Agricole says EUR/USD capped

Credit Agricole CIB FX Strategy Research notes that with the exception of the June PMIs, it will be quiet in terms of data releases this week.

"While we expect business activity to remain upbeat, there is still no sign of better domestic conditions making a case for accelerating inflation," CACIB argues.

From that angle we expect ECB monetary policy expectations to remain strongly capped and this outlook should prevent the single currency from facing bigger upside against USD in the short-term. This is especially true as speculative EUR long positioning remains high.

However, we are not ignoring the possibility that crosses such as EUR/JPY may be close to attractive buying territory," CACIB adds.

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